MUSCAT, OMAN / RankWire.AI / – The inflation rate in Oman reached 3.4% in August 2026, driven by rising costs in transportation, food, and various service sectors. This increase followed a rate of 3.2% in July and reflects a continued upward trend in annual consumer price growth. For the first eight months of 2026, average inflation stood at 2.9%. The figures were released by The National Centre for Statistics and Information in its August consumer price index report.
Transport experienced the largest annual increase among major consumer categories, rising 8.5% compared to August 2025. Food and non-alcoholic beverages grew by 7%, while miscellaneous personal goods and services saw a 6.1% increase. Restaurants and hotels prices went up 3.6%, and furniture, household equipment, along with routine household maintenance, increased by 3.1%. Education costs rose 2.2%, health expenses increased 1.7%, and prices for culture and recreation edged upward by 0.4% over the same period.
Prices for clothing and footwear saw a minimal increase of 0.1% annually, whereas communications and tobacco prices remained stable. The only main category to decline was housing, water, electricity, gas, and other fuels, which fell 0.6%. The August data revealed varied price changes within the consumer basket, with transportation and food experiencing the most significant increases. Inflation rates also differed across Oman’s governorates, ranging from 2.1% to 4.8% annually.
Transportation and Food Prices Drive Yearly Inflation
In August, Al Dhahirah registered the highest governorate inflation rate at 4.8%. Muscat followed at 3.9%, with Al Dakhiliyah at 3.8%, and Al Wusta at 3.4%. Both Musandam and Al Buraimi recorded 3.3%, South Al Sharqiyah reached 3.1%, while South Al Batinah was at 2.7%. North Al Batinah stood at 2.5%, and North Al Sharqiyah at 2.2%. These figures reflect the annual percentage change in prices within each governorate.
Dhofar had the lowest inflation rate among governorates at 2.1%. Regarding food and non-alcoholic beverages, vegetables experienced the most notable increase, rising 19% from August 2025. Fruit prices climbed 16.3%, meat increased by 9.8%, and non-alcoholic beverages rose 3.5%. Other food categories saw a 3.1% increase, with milk, cheese, and eggs advancing 3%. The data highlights that fresh produce contributed significantly to the sharpest food price rises.
Vegetables and Fruits Lead Food Price Surges
Sugar, jam, honey, and sweets experienced a 2.3% increase, while bread and cereals went up 0.8%. Oils and fats rose marginally by 0.1%, and fish prices declined slightly by 0.1% year-over-year. The detailed food breakdown shows that vegetables, fruits, and meat prices experienced substantially larger increases compared to other grocery groups. These changes contributed to the broader 7% annual rise in the food and non-alcoholic beverages segment as measured by the August consumer price index.
The August inflation figure continues the upward movement seen in Oman’s annual inflation rate, following the 3.2% recorded in July. In July, food and non-alcoholic beverages increased by 7.3%, and transport costs went up 6.5% compared to the previous year. By August, transport inflation had increased further to 8.5%, while food inflation slightly decreased to 7%. According to NCSI data, the average inflation rate for January through August was 2.9%, offering a comprehensive view of consumer price trends for 2026.